Cathay Pacific convertible bond sends shares falling hard

Cathay Pacific has unveiled a HK$6.7bn (US$869m) bond issuance. Shares fell 9.71% at the close, as within the statement Cathay confirmed that new quarantine measures planned for passenger and cargo crew arriving in Hong Kong would damage its revenue prospects. Cathay is burning through cash at a rate of HK$1-1.5 billion a month but this will increase dramatically by HK$300-400m a month following the stricter quarantine controls for aircrew now in place the statement confirmed. Cathay Pacific has launched a HK$6.74bn (US$870million) convertible bond offering of 2.75% guaranteed convertible bonds due 2026 at an initial conversion price of HK$8.57 per